The bureau says there is a chance it might cross the coast between Cape Keerweer and Pormpuraaw later today, but is more likely to move parallel to the coast and intensify to a category two or three system in coming days as it moves towards the Northern Territory.

The bureau does not expect Hadi to make landfall and its closest point will be about 300 kilometres north-east of Airlie Beach, north of Mackay.

Mackay duty officer John McIllwham says Hadi is moving away from the coast.

"The current forecast track does not indicate that the system will cross the coast and there's very little chance of any tides exceeding highest astronomical tide," he said.

"The tropical cyclone warning from Ayr to St Lawrence has been cancelled."

A low pressure system formed late last week in the Coral Sea and has so far proved unpredictable.

Early this morning it was upgraded to a category one cyclone.

The bureau says it expects the cyclone to further intensify over the next few hours and increase to a category two cyclone by this afternoon, but it is not expected to bring the heavy rainfall that was previously forecast.

Queensland Fire and Emergency Services spokesman Wayne Coutts says it is still too early to predict what might happen along the coast with rain, flooding and tidal surges.